EP Global Communications Inc fka EPGL

[franck92]

According to SharesPost, a startup simply needs to post the terms at which it wants to sell its shares -- identifying any transfer restrictions. If a buyer agrees to the terms, that buyer can create what's called a "form of agreement" for the transaction.

Once both parties have signed that contract digitally, the agreement is binding. SharesPost sends it to a bank, in this case U.S. Bank, which opens up an escrow account. The startup must deposit "evidence of ownership of its shares" and the buyer must put the purchase price and any other required fees and expenses into that account. SharesPost charges the seller a 3 percent per-transaction sales commission or $5,000, whichever is greater.

That commission might not sound all that attractive, but relative to the fees exacted by banks during an IPO, it's a bargain. In my view, unless you are legally required to list your shares publicly because you have more than the maximum number of shareholders -- which is 500 -- you're probably better off selling shares on a private exchange.

Then again, for a company like Facebook who's looking to go public this week at valuation that's expected to reach $100 billion -- or a roughly $20 billion boost to its valuation on the private exchange -- going public may be best. But if your last name isn't Zuckerberg, you should use secondary markets to get liquidity for your business instead of doing an IPO.

https://www.entrepreneur.com/article/222706